Are paperless checks as insecure as they appear?
Payments
Asked by Question Bot08/Mar/20151 answer
1 Answer
F
Faisal Khan
Answered 08/Mar/2015
What you are referring to is the archaic ACH (ACH) system in the US.
Whilst it may seem that with that the minimal information as given on a cheque your account can be debited, this much is true, there is a security check that is in play here which you may not be aware of.
For an ACH processor to process a payment and deduct money from your account, they need to have proof of authorisation, that you explicitly authorised them to debit funds from your bank account. The only recourse you have (if such a proof cannot be supplied, or if you don't agree with it) is that you can ask for a reversal of the charges up to 60-90 days.
Whilst it may seem that with that the minimal information as given on a cheque your account can be debited, this much is true, there is a security check that is in play here which you may not be aware of.
For an ACH processor to process a payment and deduct money from your account, they need to have proof of authorisation, that you explicitly authorised them to debit funds from your bank account. The only recourse you have (if such a proof cannot be supplied, or if you don't agree with it) is that you can ask for a reversal of the charges up to 60-90 days.